Set Passwords When Set Closing Dates in QuickBooks
Ask the Accountant…
Question: I have set a closing date in my QuickBooks, but my employees keep making entries in the previous year anyway which messes up my books for last year. Is there a way to stop that?
Answer: The best way to avoid that problem is to set a password when you set a closing date. I read a great suggestion from Ruth Perryman, owner of softwarediscountcenter.com. She recommends a password that warns of the financial consequences if the closing date is overridden. She recommends “200Bucks$$$,” which is what she charges any of her clients who require their books fixed if entries are made in a previously closed period. That number is probably significantly higher with inflation now, so you might want to adjust that number upwards, but you get the idea.
Harriet Gatter is a QuickBooks ProAdvisor, a former accounting professor and a former ad specialty distributor of 23 years. She advises ad specialty distributors about using QuickBooks Premier & Enterprise, and SAGE Online to save time, eliminate errors, and correctly account for your business. Her specialty is converting distributors from ProfitMaker, SmartBooks, OrderMaster, AIA, Proforma, and other accounting systems.
Please email accounting questions you would like considered for the column to HGatter@AccountingSupportLLC.com with the subject line of "Ask the Accountant".